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Israel privatising, consolidating defence sector

Israeli defense contractor Elbit Systems (ESLT.TA) said on Sunday it completed a $500 million deal to buy state-owned rival IMI Systems after receiving government approval for the privatization of IMI last week.

Elbit (ESLT.O) paid $495 million for IMI, with an additional payment of $27 million contingent on IMI meeting agreed performance goals.

โ€œThe synergy between the capabilities of the two companies … will enable us to offer an enhanced portfolio and to realize the potential of the technologies of IMI in the international arena, making this acquisition significant to our long-term growth strategy,โ€ Elbit CEO Bezhalel Machlis said.

As part of the deal, some of IMIโ€™s operations will be moved, paving the way for more than 30,000 housing units to be built.

The government announced in 2013 its intention to privatize IMI, a manufacturer of military systems best known for being an early maker of the Uzi submachine gun. Elbit was the last remaining bidder among five that had shown interest.

Source: Reuters

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